These are the interaction modes that decide how multiple cursors share Windows.
Switched (the default) gives every user their own cursor. Everyone can move, drag windows and type at the same time, but active clicking is 'switched': while one user holds a mouse button down, the others are briefly blocked from clicking. That is where the name comes from, control switches from one person to the next. It keeps things stable and predictable, which is why it is the safest mode for most setups.
Multiplex is the advanced mode. It extends switched with full concurrency: once a user clicks into a program they own it, and several users can click, drag and type in their own windows at the same time. Works with most programs but not all.
Native is plain Windows behavior, a single shared cursor with no multi-user routing.
Multi keyboard is an option you can turn on alongside either Switched or Multiplex. It enables multiple keyboards to interact at the same time: each keyboard is routed to the window its user clicked in, so several people can type into different windows simultaneously. See the
Interaction Modes section in the manual for the full comparison.